Altcoin Season Watch: Bitcoin Dominance Holds, But Breakout Signals Flash

• Bitcoin’s market cap has doubled, while the altcoin market cap remains below its all-time high.
• Analysts predict a potential altcoin season following Bitcoin’s cycle peak.
• A golden cross in the altcoin market cap signals a possible breakout.

For the better part of 2024’s third quarter, Bitcoin has watched its market capitalization balloon, hitting new highs. 

However, the altcoin market cap hasn’t kept pace, remaining below its previous all-time high, leading to concerns about capital rotation. 

Altcoin Season Index: Not Yet in “Alt Season” Territory

Presently, the Altcoin Season Index, which tracks market cycles, currently sits at 26. This is below the threshold of 75 needed to confirm an altcoin-dominated phase. While this indicates that Bitcoin is still dominant, a shift toward altcoin season could occur if Bitcoin begins to stabilize or decline.

Is Altcoin Season Imminent?

In a tweet, CryptoQuant CEO Ki Young Ju described the altcoin market as a “zero-sum PvP game,” with assets rotating among themselves without fresh capital inflows. 

In his view, only a handful of projects with real-world use cases will make it big and reach new…

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